BPGC Management has acquired a controlling interest in PB Materials, a producer of construction aggregates and ready-mix concrete, from WL Ross & Co.
PB Materials (PBM), headquartered in Midland, Texas, produces construction aggregates, sand and gravel, and ready-mix concrete, primarily serving the Permian Basin region in West Texas and southeastern New Mexico.
PB Materials operates 14 mine sites, managing nearly 300 million tons of proven aggregate reserves and producing over 20 grades of construction materials. PBM also operates 12 ready-mix production sites along with a fleet of 120 mixer trucks that supply over 750,000 cubic yards of concrete annually.
“We are pleased to partner with the management of PBM to further grow its leading position in West Texas,” said Stephen Toy, a co-founder and managing partner at BPGC. “This transaction provides the company with additional capital resources to capitalize on the highly attractive market dynamics of the region.”
WL Ross & Co. founded PB Materials (Permian Basin Materials) in October 2013 through the simultaneous acquisitions of Texas-based Crockett County Mining, Texas-based Highland Concrete, and New Mexico-based Wallach Concrete. In August 2017, PBM expanded with the acquisitions of three Texas-based companies: ARM Concrete, Kermit Concrete, and WUUD Aggregate.
“We believe that PBM will continue to be a critical supplier supporting the significant pipeline of industrial and infrastructure projects across West Texas,” said Nick Peterson, a principal at BPGC. “Management has a proven track record for both organic and inorganic growth.”
BPGC Management invests in buyouts and special situations in the industrials, materials, and chemicals sectors. The New York City-based firm was co-founded by former Invesco Private Capital and WL Ross & Co. professionals Stephen Toy and Nadim Qureshi.
LSV Advisors, a New York City-based special situations secondaries manager, co-invested in this transaction alongside BPGC. Additional financing for the PB Materials acquisition was provided by Fortress Investment Group and Hillcrest Bank, a division of NBH Bank.
WL Ross & Co. was founded in 2000 by Wilbur Ross and other professionals previously with Rothschild who were specialists in advising constituencies in bankruptcies and workouts. The firm has sponsored and managed private equity investments in several sectors including financial services, steel, energy, textiles, shipping, and automotive components. WL Ross & Co. is an indirect, wholly owned subsidiary of Invesco.
Houlihan Lokey served as the capital markets advisor to PBM and BPGC.
